Punj Lloyd - Marching Ahead at Brisk Pace*

Details

Case Code : CLINDM008
Publication date : 2006
Subject : Industrial Marketing
Industry : Infrastructure
Teaching Note : Available
Length : 07 Pages
Price : Rs. 100

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Key words:

Punj Lloyd limited (PLL), Offshore revenues, Indian Companies Act, Infrastructure services, Spectranet, engineering design, broadband services, Strategic business units, Process plants, Golden quadrilateral, Refinery up gradation, Asset preservation & maintenance, Dabhol LNG terminal power plant, Raw water intake system, Aggressive growth strategies, infrastructure projects, Penetration pricing, Return on investment, Public issue, Treatment plants, National Highways Project.

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet details the various operational areas of Punj Lloyd, especially in hydrocarbons, infrastructure and services. It also focuses on the market segmentation initiatives of the company on the basis of high growth and potential markets. The caselet also examines how the implementation of aggressive growth strategies in a phased manner helped the company bag many domestic and international projects.

Issues:   » Importance of strategic planning   » Benefits of effective market segmentation initiatives   » Implementing aggressive growth strategies in a phased manner Introduction As on September 30, 2005, Punj Lloyd Limited (PLL), the engineering, constructions, and services company operating in the Engineering, Procurement and Constructions (EPC) domain had generated 56.28 percent of its total revenues from the projects executed outside India. This was possible due to the increased number of orders that PLL bagged from other countries in the last few years.

PLL was established as a public limited company under the Indian Companies Act in 1989. PLL started its operations in the engineering construction domain, primarily in the pipeline laying segment. This family operated enterprise expanded its operations into construction of tankage and terminals, infrastructure services, construction of process plants in the petrochemical industry, turnkey telecom solutions, engineering services, plant and machinery management and maintenance, and construction of power plants. In 2004, PLL entered into the broadband services sector by establishing Spectranet, a division of PLL.

The company has achieved this position in a short span of ten years. As of November 2005, SIL produced 21,000 MT of yarn per annum and 10 million meters of fabric per day through its weaving operations with an installed capacity of 125 looms or weaving machines...

Questions for Discussion:

1. Critically analyze the growth strategies adopted by Punj Lloyd. Discuss the major factors that contributed to its success.

2. Punj Lloyd identified the foreign market as a major focus. Discuss the pros and cons of this approach.